print ]ČEZ unplugged | Candole Research
Jan Ondřich examines the theoretical underpinnings and empirical evidence for market abuse in the Czech energy sector, demonstrating that the potential for abuse is real.
ČEZ unplugged gives a realistic version of the ČEZ success story under CEO Martin Roman. Unlike valuation reports, we set ČEZ in its regional and domestic market context. We argue that market structure and policy decisions at home and abroad explain the firm’s profitability since 2004.
We establish five variables that determine ČEZ's profitability and argue that successful renewal of the Czech generation fleet is critical for maintaining such profitability, whereas foreign acquisitions are not.
We conclude that future value depends on efficient execution of Czech capex and that the risk of government failure to challenge value dilutive decisions of a management it appoints remains high.
Jan Ondřich holds an MSc in politics and governance from the London School of Economics and Political Science. To order a copy of ČEZ unplugged (EUR 650 ex.VAT) available in February 2010, please contact info@candole.com
